Preparing for Taxes with dōTERRA as a business
Taxes are a good thing…
that means you are making money with dōTERRA!
I am no tax advisor, but here are some tips we have picked up from Cindy Brown, our Team Leader, that may help with planning if too late for this year, help you get organized for next year! If you owe more that $1000 in tax, you’re technically required to file a 1040ES & Pay the estimated taxes owed, they are paid APRIL, JUNE, SEPT, JAN. We suggest that it is worth hiring a tax professional to do your taxes, the biggest reason is professionals know what to look for and find any and all tax advantages possible and that they know how to avoid things that can signal an audit.
FILING:
A schedule C is your profit and loss from business form that is used by any sole proprietor. you don’t need to have a special tax ID (EIN) you can use your SSN. This form is just another form that flows to your 1040. Basically the IR says you can deduct any expenses that are ordinary and necessary. Their publication 334 states: You can deduct the cost of operating your business. These costs are known as business expenses These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year. To be deductible, a business expense must be be ordinary and necessary. An ordinary expense is one that is common and accepted in your fiend of business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary. So set up a place to hold all of your receipts. Write things down in a calendar (meetings) so you can deduct the mileage. You’ve got to have a paper trail in case the IRS questions your return and or audits you. And keep your tax returns and supporting documents for at least 10 years!
Potential Tax write-offs:
HOME:
A percentage of your home can be a tax write-off calculate the square footage that is used regularly and exclusively for business purposes. Percentages of your mortgage, garbage, sewer, electric, gas, internet and cell phone etc., can all be written off.
MILAGE:
There are mileage tracker apps that are simple to use and record travels.
SAMPLES:
Essential oils used for samples, class materials and marketing as long as these things here helpful and appropriate for your business.
RESOURCES:
You can find a ton of resources by just going to google and typing in “dōTERRA tax tips”, I have listed some below. But definitely you can find some great information in your doTERRA Policy manual. You should really review this, it has some great information. Also the leadership magazine v12 has some nice advice from our leaders! You can purchase this magazine on your doterra website, it is only $1.50 and worth sharing them with your builders!
https://www.facebook.com/doterrataxtips?fref=ts
http://www.doterraeveryday.com/who-qualifies-for-a-1099-tax-form/
_________________________________________________________________________________________________